Cause for concern for Credit Card debtors

16/01/2007

Credit card debtors could be very concerned a there is speculation that there could be potentially another rise in interest rates of around a quarter percent. The rise will be expected at some point this year.

Interest rates have already increased in the last 6 months on three separate occasions, we saw our first interest rate hike in August, followed by November and then another only this month.

The cascading effect of these rises certainly filters down to the credit card holder via the providing company.

"The interest rate peak may now be 5.5 per cent but my forecast remains that interest rates will return to 4.75 per cent by the end of 2007," said Edward Menashy, Stockbrokers’ chief economist at Investments Specialist Charles Stanley.

The credit card market currently has around 149 zero percent credit cards available those who may be looking to possibly better manager their finances. This will also allow opportunity to delay repayments that they are currently making.